Supervision ensures the targets for use of renewable energy in the transport sector have indeed been achieved. Consequently, supervision safeguards public confidence in the system, and a level playing field.
supervision is therefore key for companies as well. If the NEa makes a supervisory visit to your organisation, you will be required to demonstrate you have met your obligations and/or all your registered deliveries are legitimate. If significant deficiencies are identified during supervision, they will be rectified to ensure the renewable energy units (HBEs) obtained accurately reflect the efforts made to obtain them. This is crucial to ensure the HBEs are truly reflective of the greening of transport and thus safeguard confidence in the system.
Compliance with the Energy for Transport system
The objective of the NEa is to ensure the highest level of compliance with legislation and regulations, whilst minimising the burden on companies as much as possible. Supervision by the NEa is risk-based. This means the NEa deploys its inspectors in areas where the risk of violations of legislation and regulations is the greatest. The NEa estimates the risks by analysing companies’ business activities, reviewing signals and consulting relevant internal and external sources of information. In this context the NEa will, wherever possible, rely on supervision by other competent authorities, such as the Tax and Customs Administration.
If an inspection by the NEa reveals a company is not fully compliant, the NEa is authorised to officially determine the delivery for final consumption. Aside from this, the NEa is also authorised to impose administrative fines or other measures.
The NEa conducts several types of supervisory activities:
Inspection
When conducting an inspection, the NEa verifies whether a company complies with the Energy for Transport legislation and regulations. Depending on the company’s activities, the inspection also focuses on aspects such as the registration of renewable energy deliveries, the obligation to register fuel deliveries or compliance with the annual obligation and the reduction obligation.
The scope of an inspection is determined by the size and complexity of the companies, as well as company’s role in the renewable energy supply chain. The scope of a biofuel producer will be different from the scope of a company registering renewable energy.
Further investigation of registered fuel deliveries
Each year, the Tax and Customs Administration provides the NEa with an overview of discrepancies between excise duty returns and the fuel delivery records in the Energy for Transport Registry (REV). This can prompt the NEa to visit companies and carry out a data audit. This audit is a check on the underlying data forming the basis for the registered fuel volumes. In some cases, the NEa will carry out a regular inspection at the same time as this visit.
Reinspection
If the NEa has identified a breach which a company is required to remedy within a reasonable timeframe, the NEa may carry out a reinspection. During a reinspection, the NEa will verify whether the identified deficiencies were put right in accordance with its instructions.
Project-based inspections
In the event the NEa identifies compliance issues at multiple companies or considers specific circumstances or information merit further investigation, it may wish to conduct a project-based inspection in relation to this with multiple companies or in several sectors.
Supervisory visits by the NEa are carried out according to these steps:
Prior to a supervisory visit
Before a supervisory visit takes place, the NEa will usually contact the company to make an appointment for the inspection, confirmed by email. In this email the NEa will include the schedule for the inspection. The NEa will also request information from the company in advance, which will allow the inspection to run more smoothly.
During a supervisory visit
On the agreed date, the NEa will conduct an inspection which will essentially consist of the following:
a brief explanation by the company of its business activities;
an explanation of the purpose and design of the inspection;
performance of the inspection in accordance with the inspection manual;
a tour of the company as appropriate;
conclusion with a summary of the key findings;
agreements to remedy any deficiencies, when applicable.
The NEa will typically have a minimum of two inspectors conduct the on-site inspection. In some instances, the NEa will carry out an inspection together with other supervisory authorities.
After a supervisory visit
Following an inspection, the NEa will prepare an inspection letter setting out its findings and the agreements reached. In the event a company fails to abide by the agreements, the NEa is able to take enforcement measures to ensure compliance.
Companies are able to prepare for a supervisory visit by the NEa. The preparations you make will help the visit to run smoothly.
What can you do to prepare?
Ensure the NEa can access any electronic records and that the relevant experts are present to provide explanations on these records.
Carefully read the schedule ahead of time so you are well prepared. Also ensure you provide the requested information in time.
On the day of the supervisory visit, please ensure you have the following documents and/or information available:
business records regarding amounts of energy registered and/or fuel deliveries registered;
business records including the mass balance, purchase and sales invoices, proofs of sustainability and, if relevant, double counting certificates;
design of the administrative organisation and internal controls, including operational procedures relevant to energy for transport.
During the supervisory visit it is also important the responsible members of staff are in attendance, or may at least be contacted to answer questions.
NEa inspectors are authorised to enter business premises regardless of whether the company in question has given permission.
You must give inspectors access to the business premises at all times. Inspectors may be accompanied by a designated person. Inspectors will typically announce their visit in advance, but they have no obligation to do so.
NEa inspectors will carry an identity card issued by the supervisory authority, as referred to in Section 5:12 of the General Administrative Law Act (Dutch). Inspectors must show this identity card on request. Inspectors are not required to present additional identification.
As a supervisory authority, the NEa is also authorised to take enforcement action.
